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AT&T: Non-Exclusive iPhone Won’t Affect Our Earnings

AT&T: Non-Exclusive iPhone Won’t Affect Our Earnings

AT&T: Non-Exclusive iPhone Won’t Affect Our Earnings [AT&T Tells Investors That Verizon iPhone Won't Hurt Them, Basing Hope On Family Plans]

With the help of the iPhone, AT&T has managed to secure a very solid spot as the #2 biggest mobile carrier in the United States. However, as I’m sure you’re aware, their service is unpopular and many iPhone users pine for the day when they can jump ship to Verizon. Will the iPhone being out for other carriers affect AT&T? They don’t think so.

While AT&T’s claim to their investors regarding iPhone non-exclusivity may seem optimistic at best – their may be some truth to it. According to SEC filings made by AT&T, 80% of their contract customers are on either a family plan or business plans. They feel that if they lose exclusivity for any phone – iPhone, BlackBerry 9800 Torch, whatever, it wouldn’t hit them too hard.

AT&T writes in their SEC filing:

Also, while the expiration of any of our current exclusivity arrangements could increase churn and reduce postpaid customer additions, we do not expect any such terminations to have a material negative impact on our Wireless segment income, consolidated operating margin or our cash from operations.

So, they admit that they could lose customers (churn rate is the rate of customers lost every quarter by the carrier), they don’t imagine losing money.

A CDMA iPhone on Verizon has been rumored/speculated since the iPhone first came out in ’07. Lately however, some reputable news outlets like the Wall Street Journal and Bloomberg are reporting that it’s really, really close. Would you abandon AT&T for Verizon? Sound off in the comments.

[Thanks: http://nexus404.com]

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